Canberra gets apartment hotel

The federal Customs department in Canberra's city centre is being turned into a hotel.

Construction has already begun to create a 84-room apartment hotel on the site located, on City Walk near the bus interchange.

The hotel will comprise one and two-bedroom apartments and studios.

The hotel reception and lobby will be on the ground floor.

The plan is to reconstruct the existing mezzanine.

It will get a new entrance and stairwell for a business lounge and conference facilities.

The new hotel will also have on-site parking and a gym.

It is estimated the hotel will open in late 2019.

The company behind the project is the Sandran Property Group which bought the site in 2001.

The project, which is estimated to cost $15 million, will be the second Quest apartment hotel in Canberra.

It’s all part of Sandran group’s expansion plans as the the franchise already has serviced apartments in the city. These are located a few blocks away on West Row, as well as elsewhere.

Quest general manager James Shields said Canberra was perfectly placed for Quest to expand the business because it is "bustling" with government workers, conventions and corporate meetings.

“The public sector generates a significant proportion of economic output and contributes to a sizeable proportion of travel, with over 30 per cent of trips generated being for business travel,” Mr Shields told the Canberra Times.

Mr Shields said the hotel was placed to cater for the increased demand for corporate accommodation in the city which is now changing Canberra.

The new hotel is part of a trend in the city with the ACT government approving a Queensland Investment Corporation mixed used development on nearby Cooyong Street. That particular development includes 180 hotel rooms and 248 apartments.

At the same time, developer Grocon is opening a 180-room Abode hotel nearby on the corner of Northbourne Ave and Elouera Street.